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AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated)

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View Poll Results: My opinion of the announced AA - US merger is:
This is the best of all possible worlds; great idea!
33
3.93%
This portends a stronger airline, with some changes for all
192
22.88%
I am neutral - pros and cons for all
199
23.72%
I think this is a somewhat bad idea with some real challenges
226
26.94%
I am completely opposed to this merger; terrible idea!
189
22.53%
Voters: 839. You may not vote on this poll

AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated)

 
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Old Aug 21, 2013, 2:15 pm
  #2251  
 
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Originally Posted by cbn42
Maybe Texas is still bitter about losing the CO headquarters. Despite mostly CO executives taking over at the new UA (hence the term COdbaUA) and despite Illinois being generally seen as less business-friendly, Texas didn't get picked.

Or maybe Abbott just signed onto the lawsuit to influence the settlement in Texas' favor. If he doesn't participate then he will have no say, but if he is at the table he can take the role of mediator between the airlines and DOJ.
I'm backing this theory:
We recently found out that Parker purchased his house for Texas. Maybe they realized they didn't want him now....?

Can't believe we didn't come to this obvious point of speculation earlier.
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Old Aug 21, 2013, 3:30 pm
  #2252  
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Originally Posted by WhatsInYourBackpack
I'm backing this theory:
We recently found out that Parker purchased his house for Texas. Maybe they realized they didn't want him now....?

Can't believe we didn't come to this obvious point of speculation earlier.
While US and AA management seem fine with not making a big public issue about a no-fly list which disrupts interstate travel for people never even arrested let alone convicted of a crime, US and AA management might make more of an issue if released drunk drivers were subject to disrupted interstate travel and restricted residence transfer options within the US. Isn't he the guy who has a history of drunk driving while employed by AA and also while employed by US? No surprise that the A-Gs in at least a couple of his historical home states don't like this merger as he comes with it.
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Old Aug 21, 2013, 4:23 pm
  #2253  
 
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Originally Posted by FWAAA

My take is that the Wall St analysts and various bloggers were completely blindsided by the suit and many of them have been telling us nonstop that this merger is essential to AA's success (and the success of much smaller US) and the long-term stability of the industry.

Some of them predicted smooth sailing thru the antitrust review process, and they were wrong. Of course, the government quotes Parker and Horton as saying that both are viable stand-alone airlines, so it's getting tough to tell who's being truthful and when they're being truthful.
This is why it gave me such pleasure last week to write the following headline for a story on the merger and accompany it with the appropriate picture (below):

American Airlines-US Airways Merger: Not Over Until the Fat Lady Sings

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Old Aug 21, 2013, 5:24 pm
  #2254  
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Well apparently some local officials in Texas and Florida aren't too happy about the lawsuit and want the merger to go through.

Rather foolishly (in my opinion), they are openly saying that they are only concerned about their states, rather than the consumers. For example, "By any stretch of the imagination, having what the press refers to as the 'World's Largest Airline' based in Texas, makes our state more competitive."

http://www.chicagotribune.com/busine...tory?track=rss
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Old Aug 21, 2013, 5:38 pm
  #2255  
 
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Originally Posted by WhatsInYourBackpack
I'm backing this theory:
We recently found out that Parker purchased his house for Texas. Maybe they realized they didn't want him now....?

Can't believe we didn't come to this obvious point of speculation earlier.
Why not?
I think he would fit in perfectly in Texas
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Old Aug 21, 2013, 5:50 pm
  #2256  
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Originally Posted by FWAAA
A quick perusal of the US schedule shows about 60 daily departures from Texas, not 30.

US serves AUS, DFW, ELP, IAH and SAT. US merges with AA and there goes the second biggest airline at DFW and IAH and whatever competition US provided.
I was wrong. The total number of flights US has in TX daily is 53: 17X DFW; 15X IAH; 8X SAT; 8X AUS; 5X ELP. But there is no way that US is #2 at DFW or IAH. UA alone flies nonstop from DFW to LAX, SFO, DEN, ORD, IAH, IAD, and EWR. Then there is DL's service. And at IAH, AA flies to LAX, DFW, ORD, JFK, and MIA. And again, then there is DL's service.
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Old Aug 21, 2013, 5:54 pm
  #2257  
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Originally Posted by Fanjet
But there is no way that US is #2 at DFW or IAH.
Are you doubting FWAAA? Tsk Tsk.

Check out http://www.transtats.bts.gov/airports.asp

Yes, US is #2 at both airports (aggregating regionals with their mainline "parent").
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Old Aug 21, 2013, 6:26 pm
  #2258  
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Originally Posted by hillrider
Are you doubting FWAAA? Tsk Tsk.

Check out http://www.transtats.bts.gov/airports.asp

Yes, US is #2 at both airports (aggregating regionals with their mainline "parent").
Which really is a deceptive way of doing it. The airlines sell tickets on those regionals as if they were their own metal. And those regionals do not sell tickets separately on their own code. It would be like saying that DL doesn't serve LAX-SFO.
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Old Aug 21, 2013, 6:58 pm
  #2259  
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Originally Posted by Fanjet
Which really is a deceptive way of doing it. The airlines sell tickets on those regionals as if they were their own metal. And those regionals do not sell tickets separately on their own code. It would be like saying that DL doesn't serve LAX-SFO.
Codeshares are deceptive; couldn't agree more. The DOT aggregates data by carriers, i.e. "certificate holders", without banning them from offering their services only through a form of code sharing ("operated by") or require them additional reporting burden of disclosing whether each flight is operated exclusively on behalf of a different certificate holder. And even this is a mess, as certain regional flights might be sold by a few different carriers (e.g. flights operated by Horizon Air and sold by AS and DL, or, using LAX-SFO, flights operated by Skywest and sold by AS).
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Old Aug 21, 2013, 8:30 pm
  #2260  
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Originally Posted by GUWonder
Sirius was fortunate to get the DOJ and FCC to consider the merger in light of a broader market than just satellite radio and that internet radio should be considered as part of the same market given mobile internet services and radio services via them were part of the competitive landscape. US won't be able to pull that off.
Well, maybe they could try to get the government to consider the teleconferencing industry as part of the competitive landscape. Or Megabus.
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Old Aug 21, 2013, 9:12 pm
  #2261  
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Originally Posted by Fanjet
Which really is a deceptive way of doing it. The airlines sell tickets on those regionals as if they were their own metal. And those regionals do not sell tickets separately on their own code.
That is exactly why regionals should be included with the mainline parent. For antitrust law purposes, if you want to analyze market competition, the mainline is the one selling all the tickets, and it is not competing against itself or its own regional carriers. If a mainline diversifies its regional contracts to more separate companies, it is not going to increase competition and bring down ticket prices.


Originally Posted by Fanjet
It would be like saying that DL doesn't serve LAX-SFO.
Delta does serve LAX-SFO on mainline with a 737, although I think that might be discontinued with the introduction of the west coast "shuttle" service.
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Old Aug 21, 2013, 9:26 pm
  #2262  
 
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Originally Posted by cbn42
Rather foolishly (in my opinion), they are openly saying that they are only concerned about their states, rather than the consumers. For example, "By any stretch of the imagination, having what the press refers to as the 'World's Largest Airline' based in Texas, makes our state more competitive."
Public officials (no matter what level of government) and politicians are known for being foolish and selfish, though.
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Old Aug 21, 2013, 9:57 pm
  #2263  
 
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Originally Posted by GUWonder
While US and AA management seem fine with not making a big public issue about a no-fly list which disrupts interstate travel for people never even arrested let alone convicted of a crime, US and AA management might make more of an issue if released drunk drivers were subject to disrupted interstate travel and restricted residence transfer options within the US. Isn't he the guy who has a history of drunk driving while employed by AA and also while employed by US? No surprise that the A-Gs in at least a couple of his historical home states don't like this merger as he comes with it.
Get over it, this is not what it's about.
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Old Aug 21, 2013, 9:59 pm
  #2264  
 
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Originally Posted by LETTERBOY
Public officials (no matter what level of government) and politicians are known for being foolish and selfish, though.
As are corporate senior leaders as well. Why do you think AA ended up in this position anyway?
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Old Aug 21, 2013, 10:19 pm
  #2265  
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Originally Posted by grahampros
As are corporate senior leaders as well. Why do you think AA ended up in this position anyway?
My take is this was due, in the long run, to previous management refusing to go into Chapter 11 Protection.
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